Economic significance of Basslink in the Australian National Electricity Market

Abstract

This paper assesses economic significance of Basslink in terms of market benefits, namely operating, capital and unserved energy cost savings. It presents long term market benefit modelling framework consistent with the Australian Regulatory Investment Test for Transmission to assess the market benefits attributable to Basslink. Economic analysis concludes that Basslink continues to be economic value in the Australian National Electricity Market for a broad range of market development scenarios studied.